Former American Axle workers overtaxed?

BUFFALO, N.Y. (WIVB) - Former workers who took early buyouts from American Axle and Manufacturing, in 2006-07, say they lost thousands of dollars to Social Security.

Those former workers say too much was deducted from their paychecks to cover their Social Security taxes--the "FICA" line on their checks--and Medicare.

Now they are being told they can't get their money back--in most cases, thousands of dollars--because it is too late.

"American Axle announced they were closing the Buffalo plant and moving the work to Mexico", former worker Keith Zalikowski remembers hearing the news in 2006.

To further cut costs, Zalikowski and hundreds of other workers were offered buyouts, worth thousands of dollars, in one lump sum, but even that had a downside--higher tax brackets for some, and as much as $4,000 more deducted for FICA and Medicare.

But when tax time came, Keith says few workers realized they could apply for a refund on those excess taxes that were taken out, "obviously it was a unique year because of that lump sum", and who knew too much had been taken out, "we got our refund, it was a little more than we would normally get, and we didn't think anything of it".

Congressman Brian Higgins has written letters to the IRS and American Axle's CEO Richard E. Dauch looking for answers, "to investigate this matter in an expeditious way", and if the former workers were shortchanged, "who is responsible if, in fact, an overtaxation had occurred".

But Zalikowski says, even if the ex-employees were overtaxed, the IRS and a tax accountant have told him, he has waited too long to file an amended return, "got my paperwork back in the mail", but the accountant attached a note, "saying something about a statute of limitations is three years, and that it expired, and that he couldn't do anything".

But Higgins says the workers should not be penalized for someone else's mistake, "where an error had existed, they could not have known, so I think that there's extenuating circumstances here", which Higgins believes the IRS or American Axle should settle.

Higgins' office is looking to help former American Axle employees. You can learn more by following this link.  And former workers have set up a Facebook page to share information. You can join that page here.